Digital non-banking financial companies (NBFCs) sanctioned 3 crore personal loans totalling Rs 43,019 crore in Q1 FY26, representing 80 per cent of personal loan volumes, a report said on Tuesday.

Further, the personal loans sanctioned by digital NBFCs accounted for 20 per cent of the sanction value, according to the data compiled by Fintech Association for Consumer Empowerment (FACE), a self-regulatory organisation in the fintech sector.

Their growing portfolio of Rs 1.2 lakh crore (June 2025) reflects growth underpinned by improving credit quality, the report said.

The report, based on data from credit bureau Crif High Mark, signalled that digital NBFCs are now central to India’s personal loan market, significantly contributing to the expansion of formal credit and deepening inclusion

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